Financial Performance - The company reported a net income of approximately $5.6 million for the three months ended March 31, 2024, compared to a net loss of approximately $4.1 million for the same period in 2023, reflecting a positive change of approximately $9.6 million[158]. - Net income for the three months ended March 31, 2024, totaled approximately $5.6 million, an increase of approximately $9.6 million, or 237%, compared to a net loss of approximately $4.1 million for the same period in 2023[168]. Operating Expenses - For the three months ended March 31, 2024, total operating expenses were approximately $9.2 million, an increase of $5.2 million or 127.5% compared to $4.1 million for the same period in 2023[158]. - General and administrative expenses increased by approximately $5.9 million, or 220%, totaling approximately $8.6 million for the three months ended March 31, 2024, compared to approximately $2.7 million for the same period in 2023[162]. - General and administrative expenses increased by approximately $5.9 million, primarily due to $4.0 million in non-cash expenses related to financial advisor fees and increases in legal fees, share-based compensation, professional fees, and personnel costs[163]. - The company expects general and administrative expenses to decrease during the remainder of the fiscal year[164]. Cash Flow and Liquidity - As of March 31, 2024, the company had cash and cash equivalents of approximately $3.4 million and cumulative losses attributable to common stockholders of approximately $178.8 million[152]. - Net cash used in operating activities for the three months ended March 31, 2024, was approximately $3.7 million, primarily due to a non-cash change in deferred tax valuation allowance of $14.9 million[170]. - Net cash provided by investing activities was approximately $0.1 million, attributed to net cash acquired in the IMGX acquisition[172]. - Net cash provided by financing activities was approximately $3.4 million, primarily from net proceeds of approximately $3.6 million from a registered direct offering in March 2024[173]. - The company recorded a net decrease in cash, cash equivalents, and restricted cash of approximately $279,857 for the three months ended March 31, 2024[169]. Mergers and Acquisitions - A merger with ImmunogenX, Inc. was announced in March 2024, focusing on the development of the biologic Latiglutenase for celiac disease[144]. - The company entered into a non-binding term sheet to sell its Niclosamide program, which includes a low seven-figure upfront payment and future milestone payments[145]. Future Outlook and Funding - The company anticipates needing to generate significant product revenues to achieve profitability, as it has not yet achieved profitability and expects to continue incurring net losses[152]. - The company is actively pursuing additional funding through equity and/or debt financings to support its operations and product development[153]. Tax and Other Benefits - A tax benefit of approximately $14.9 million was recorded due to the release of a portion of the valuation allowance against deferred tax assets in connection with the IMGX Merger[167]. - Other expenses increased by approximately $0.06 million due to interest expenses related to the revolving line of credit and EIDL loan assumed with the IMGX acquisition[165]. Research and Development - Research and development expenses decreased by approximately $0.8 million, or 58%, totaling approximately $0.6 million for the three months ended March 31, 2024, compared to approximately $1.4 million for the same period in 2023[159].
First Wave BioPharma(FWBI) - 2024 Q1 - Quarterly Report